Why Türkiye Still Makes Strategic Sense for Global Investors

As Türkiye continues to develop its industrial and logistics capacity, the Turkish Chambers offer a grounded perspective on both the challenges and the enduring value proposition of investing in the country.

In recent years, Türkiye has experienced economic volatility, including high inflation, currency depreciation, and elevated borrowing costs. These macroeconomic conditions have created headwinds for local and international businesses alike. Yet, despite these hurdles, many global firms continue to see Türkiye as a strategic destination, particularly in light of shifting global supply chains, new trade barriers, and the growing demand for resilient regional production bases.

A Geopolitical and Trade Advantage

Türkiye’s location at the intersection of Europe, Asia, and the Middle East offers investors direct access to 1.3 billion consumers across surrounding regions. As companies move away from over-concentration in East Asia, Türkiye is being actively considered for nearshoring and diversification strategies, especially by European and Gulf-based firms.

Its membership in the EU Customs Union and extensive Free Trade Agreements (FTAs) with more than 30 countries offer a competitive advantage for manufacturers and exporters. In today’s environment of escalating global tariffs, Türkiye’s access to these preferential markets can significantly reduce risk and increase profitability.

Manufacturing Strength and Export Reach

Türkiye remains a robust industrial player, with well-established sectors in automotive, white goods, electronics, machinery, chemicals, textiles, and defense. Despite economic challenges, 2023 saw Türkiye reach a record-breaking $256 billion in exports, demonstrating its capacity to serve international markets.

The country is moving up the value chain, with a growing share of exports in medium-high-tech manufacturing. Türkiye’s role in global value chains (GVCs) continues to expand, driven by the presence of multinational corporations establishing R&D hubs, design centers, logistics platforms, and regional HQs.

Investment Zones and Incentives

Türkiye has designated multiple Free Zones (Free Trade Zones) to attract international investment. These zones offer favorable conditions such as:

• Exemption from corporate income tax for manufacturing activities
• Customs duty and VAT exemptions
• Simplified trade procedures
• Profit repatriation rights
• No time limits for goods to remain within the zone

With over 18 active free zones, including those in Istanbul, Izmir, Mersin, and Antalya, Türkiye provides foreign investors a tailored, efficient, and legally secure base for export-oriented production. These zones are particularly attractive for companies operating in technology, life sciences, and advanced manufacturing.

Priority Sectors with Long-Term Potential

Türkiye continues to channel investment into strategic sectors, including:

• E-mobility and battery technologies
• Defense and aerospace
• Agro-food technologies and processing
• Information and communication technologies (ICT)
• Life sciences and healthcare innovation

The government offers sector-specific incentives, ranging from tax deductions to land allocation, R&D grants, and customs exemptions.

Startups and Innovation Ecosystem

Türkiye is also home to a growing and competitive startup scene. Over the past three years, Turkish startups raised $4 billion in funding, with strength in gaming, fintech, logistics tech, and SaaS. Since 2020, seven unicorns have emerged from Türkiye, and Istanbul ranks #2 in Europe for gaming venture investments.

This growth is fueled by a young, highly educated, and tech-savvy workforce, along with a culture of entrepreneurship that continues to attract international venture capital.

Aligning with Global Sustainability Goals

Türkiye has introduced a unique Sustainable Development Goals Scoring Mechanism (SSM) to evaluate foreign investments based on their contributions to the UN SDGs. The mechanism prioritizes and accelerates projects aligned with sustainable development goals, particularly in energy transformation, circular economy, and green manufacturing.

This methodology has earned international recognition and was honored with the UN Excellence Award for Investment Promotion in Energy Transformation at the 2023 World Investment Forum in Abu Dhabi.

Navigating Türkiye’s Investment Climate with Confidence

While Türkiye’s economy is undergoing a complex transition, the country still offers strategic benefits for international investors seeking to diversify operations, access new markets, and leverage a central trade hub with deep manufacturing capabilities.

At the Turkish Chambers, we help foreign companies navigate Türkiye’s investment ecosystem — from evaluating sectoral incentives to setting up in free zones, and identifying the best government support programs aligned with your business model.

To explore further opportunities and stay informed about the latest investment policies, we recommend visiting the Investment Office of the Presidency of Türkiye.